In with the new and out with the old? Industrial estates and economic development in Durban, South Africa Authors: Glen Robbins* ([email protected]) Myriam Velia* ([email protected]) Jana Rogoll** Chiedza Audrey Moyo** Corresponding author: Glen Robbins, [email protected], Development Studies, Shepstone Building, Howard College Campus, University of KwaZulu-Natal, 0824969396 * Senior Researchers, South African Research Chair Initiative for Applied Poverty Reduction Assessment, School of Built Environment and Development Studies, University of KwaZulu- Natal. ** Research Assistants, South African Research Chair Initiative for Applied Poverty Reduction Assessment, School of Built Environment and Development Studies, University of KwaZulu- Natal. Abstract: In cities where manufacturing has thrived, considerable local attention has been given to the development of areas of land for industrial estates. The development patterns of many cities have thus been heavily influenced by choices about the location of, and infrastructure for, industrial estates. These estates, and the businesses that have occupied them, have contributed to the growth and identities of cities. Yet, as much of the world has transitioned away from established forms of mass production, and as the influences of globalised value chains in production have escalated, challenges for mature industrial estates have increased whilst demand for greenfield land development opportunities has grown. In this context it is not uncommon for cities to have new mixed-use industrial or business estates and older estates in varying states of transition from older dominant uses to non-industrial uses or to a mix of these and a variety of evolving industrial uses. With the transformation of industrial estates regularly noted in various local urban policy formulations, and occasionally considered in national policy, questions arise of how best to attend to the often-varied needs of mature industrial areas, including those experiencing decline and urban decay. A challenge is in terms of these estates competing for the attention of policy-makers alongside demands for the transformation of new land parcels, and their associated infrastructure needs. In South Africa, with its experience of some considerable industrialisation, these issues have featured in some debates on the development patterns and character of cities and towns. Historically, areas set aside for industrial uses were typically set up to separate racially defined residential group areas. Furthermore, black residential areas were often located on land close to industrial estates to ensure the proximity of labour and to utilise land that was frequently deemed unsuitable for other uses because of the negative impacts of various industrial activities. Apartheid policy- makers also incentivised the development of industrial estates on the urban periphery to keep the growing black urban labour force away from the core parts of cities. A city such as Durban and its surrounds, under the eThekwini Metropolitan Municipality, today reflects the impact of these various influences in the presence of both mature and newer industrial estates. Drawing on research into eThekwini industrial estates and on a survey of manufacturing firms in the area, this paper discusses the challenges arising from changing firm demands on contemporary and future urban policy considerations, with a particular focus on urban economic development. The paper argues that a confluence of factors have impacted on conditions in mature estates and on the growth of new industrial estates. Furthermore, the tendency of various policy 1 influencers to neglect the needs in more mature estates in favour of greenfield projects has had considerable impacts on the urban form of the city and its economic development trajectory. Key words: Industrial estates, Urban development, Cities, Manufacturing, Economic development, Local government, Urban infrastructure Acknowledgements: The Durban Medium and Large Manufacturing Survey research team is grateful for the support of the following during the Durban Medium and Large Manufacturing Survey: The South African Presidency and the European Union for support through the Programme to Support Pro-Poor Policy Development (PSPPD); eThekwini Municipality; and, the KwaZulu-Natal Department for Economic Development, Tourism and Environmental Affairs. At the eThekwini Municipality particular support was provided by Ajiv Maharaj, Shivani Singh, Aurelia Albert, Denny Thaver, Shunnon Tulsiram, Takalani Rathiyaya and Nuthan Maharaj. The research team is also most grateful to survey respondents and local business organisations who provided insights and data for the survey. The research team has received the support of Professor Sarah Bracking, Kathleen Diga and Shivani Durgiah of the South African Research Chair Initiative for Applied Poverty Reduction Assessment and the Population and Development Studies Disciplines in the School of Built Environment and Development Studies at the University of KwaZulu-Natal. 2 1. Introduction Industrial estates and industrial sites have constituted, and continue to constitute, an important use of land in many - if not in most - cities around the world. Industrial development has of course been closely associated with processes of urbanisation. This has been noted by authorities such as Alfred Marshall, one of the eminent documenters of the 18th century industrial revolution in Britain, and somewhat more recently by Jane Jacobs who explained the process of land use specialisation in a city context. She argued in favour of urban land use specialisation, geared to both meeting the particular needs of businesses, and minimizing excessive conflict arising from conflicting land uses. For Jacobs this was important because, “The overwhelming fact about cities is that if they do not maintain self-generating economies, they will ultimately stagnate and decline” (Jacobs, 1969: 652). In cities where manufacturing has historically, and more recently thrived, considerable local attention has been given to the development of areas of land industrial estates. The development patterns of many cities have thus been heavily influenced by choices about the location of, and infrastructure for, industrial estates. These estates, and the businesses that have occupied them, have not only contributed to the growth of cities, but also contributed to the identity of cities and the people living and working in them. However, as much of the world has transitioned away from established forms of mass production (Piore & Sabel, 1984) and as the influences of globalised value chains in production have escalated (Gereffi et al., 2005), challenges for mature industrial estates that pre-date some of these influences have increased whilst demand for greenfield industrial land development opportunities has grown. In this context it is not uncommon for cities to have both, new, often mixed-use, industrial or business estates, as well as many older estates in varying states of transition from older dominant uses to non-industrial uses or to a mix of these and a variety of evolving industrial uses. Questions of how best to attend to the often-varied needs of mature industrial areas, including those experiencing some form of decline and urban decay, compete for the attention of policy makers alongside demands for transformation of new land parcels, and their associated infrastructure needs. As cities have experienced growth, especially more recently in many developing countries, competing pressures have emerged for scarce, serviced land and property. In South Africa, with its experience of some considerable industrialisation, these issues have featured in some debates on the development patterns and character of cities and towns historically and in more recent times (Maylam, 1990; Hart, 2002; Scott, 2003; Geyer, 1989). Historically, areas set aside for industrial uses were often used as part of apartheid urban planning arrangements to separate racially defined residential group areas (Parnell & Mabin, 1995). Furthermore, black residential areas were often located on land close to industrial estates to ensure the proximity of labour as well as to utilise land that was frequently deemed unsuitable for other uses because of the negative impacts of various industrial activities. Apartheid policy makers also incentivised the development of industrial estates on the urban periphery as part of a plan to try and keep the growing black urban labour force away from the core parts of the city (Maylam, 1990). In the city of Durban, and its surrounds (falling under the eThekwini Metropolitan Municipality) the impact of these various influences are reflected in the presence of both mature and newer industrial estates in particular areas of the city, overlaid across a persistent racial geography of settlement (Schensul & Heller, 2011). Today, the eThekwini Municipality is subject to an array of other influences, some showing continuity with the past whilst others reflect new factors. A wide range of state-led policies and programmes prevail in the contemporary South African metropolitan context and these often interact with civil society actors and activities of those in the businesses community. In fact, urban space and the regulatory and development processes associated with it are subject to widespread contestation, not just from more powerful actors with a metropolitan sphere of influence, but also with local actors in local spaces. Industrial estates,